CHAPTER 14 Sales Promotion, Personal Selling, and Sales Management

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CHAPTER 14Sales Promotion, Personal Selling, and
Sales Management
M A R K E T I N G
Real People, Real Choices Fourth Edition
Michael R. Solomon Greg W. Marshall
Elnora W. Stuart
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Chapter Objectives

• Explain what sales promotion is and describe some
  of the different types of trade and consumer
  sales promotion activities
• Explain the important role of personal selling in
  the marketing effort
• List the steps in the personal selling process
• Explain the role of the sales manager

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Sales Promotion

• Programs that marketers design to build interest
  in or encourage purchase of a product or service
  during a specified time period

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Sales Promotions by Target

• Consumers
• Coupons
• Samples
• Contests
• Bonus packs
• Premiums
• Rebates
• Frequency programs
• Brand placement

• Trade
• Trade shows
• Incentive programs
• POP displays
• Push money
• Promotional products
• Cooperative promotions

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Promotional Products
Promotional products like 3M Post-It Notes with
corporate logos are a great way to keep a brand
in front of customers.
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Contests
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Contests
Contests like this one encourage consumers to
purchase more product.
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Premiums
Premiums provide consumers with a reason to
choose one brand over another.
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Samples
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Samples
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Cross-Promotions
Cross-promotions tie together two or more brands
in a single sales promotion
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Brand Placements

• Practice of integrating specific products and
  brands into filmed entertainment
• name brand product is used as a prop or set in TV
  show or movie
• increase brand awareness and image

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Brand Placements
Visual
Hands-on
Verbal
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Personal Selling

• Occurs when a company representative contacts a
  prospect directly regarding a product
• Critical for many push strategies, B2B products,
  products that are complex and expensive, and
  products requiring a personal touch

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Types of Salespeople

• Order takers
• Technical specialists
• Missionary salespeople
• Team selling
• Order getters

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Approaches to Personal Selling

• Transactional Marketing The Hard Sell
• Relationship Selling
• Winning customers
• Keeping customers
• Developing customers

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Figure 14.1 The Creative Selling Process
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• Sales organizations develop web response programs
  to develop leads and turn them into customers

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• CRM systems help a sales force to organize and
  utilize information about their customers

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Sales Management

• Process of planning, implementing, and
  controlling the personal selling function
• Setting Sales Force Objectives
• Creating a Sales Force Strategy
• Recruiting, Training, Rewarding Salespeople
• Evaluating the Sales Force

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• Meetings today can take place in virtual settings

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• Incentives are used to motivate salespeople

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Figure 14.2 The Sales Force Management Process
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Sales Force Compensation

• Straight commission plan
• Commission-with-draw plan
• Straight salary compensation plan
• Quota-bonus plan

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Sales Compensation Examples
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Sales Compensation by Industry
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Sales Incentives

• Leisure trips/travel
• Merchandise/gifts
• Recognition dinners
• Plaques/awards
• Cash

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Issues for Discussion_1

• Companies sometimes make a product available on
  deal so often that consumers think it will always
  have a promotion. What are some examples of this?
  How can companies prevent this?
• Hard selling has evolved to relationship selling.
  Is the hard-sell still used? In what types of
  organizations? What is the future of these
  organizations? When is transactional selling
  still appropriate?

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Issues for Discussion_2

• What do you think about the quality of most
  retail salespeople you encounter? How can
  retailers improve the quality of their sales
  associates?
• Do you think salespeople are appropriately paid?
  What warrants their compensation levels?
• How might salespeople training needs vary based
  on experience?
• What approach should sales managers use to
  determine appropriate rewards programs?